Old vs New Tax Regime in 2026: Complete Comparison for Salaried Employees and Self-Employed Professionals in Pune

Old vs New Tax Regime: Strategic Comparison for 2026

The choice between the Old and New Tax Regimes under the Finance Act requires careful mathematical analysis. Under the New Tax Regime (Section 115BAC), tax slabs are broader and lower, with a full tax rebate up to ₹7 Lakhs (making income up to ₹7.5 Lakhs tax-free with standard deduction). However, you must forfeit key deductions such as HRA, Section 80C (PPF, ELSS, EPF), Section 80D health insurance, and home loan interest under Section 24(b).

For complete filing assistance, review our complete guide to ITR filing in Pune or consult our tax planning advisors.

Decision Rule of Thumb for Pune Taxpayers

• Choose Old Regime: If your total eligible deductions (HRA + 80C + 80D + ₹2 Lakhs Home Loan Interest) exceed ₹3.75 Lakhs to ₹4.25 Lakhs per year.
• Choose New Regime: If you do not have a home loan, pay modest rent, or prefer not to lock up capital in tax-saving financial instruments.